|Re: Cohousing-L Digest, Vol 79, Issue 1||<– Date –> <– Thread –>|
|From: juniperjojo (juniperjojoaol.com)|
|Date: Wed, 4 Aug 2010 20:42:03 -0700 (PDT)|
Sharon,Can you link to some supportive documentation for your statement that, "banks also won't lend on a building that has more than 10% of condo units leased."?
I've heard something similar before, but in extensive online research have found absolutely no evidence that this is true, and am starting to wonder if this is something of an urban legend/misconception.
The only regulations I can find are these:"The government-backed mortgage-finance company (i.e., Fannie Mae) stopped guaranteeing mortgages in condo buildings where fewer than 70% of the units have been sold [...]. In addition, the company won't back loans for sales in buildings where 15% of current owners are delinquent on association fees or where more than 10% of units are owned by a single-entity."
We recently learned that the only limitation on number of leased units was that, in order to qualify for a mortgage, no more than 50% of all of the units in that development can be rented.
If you have any different information -- with citations/references, please -- please pass it on!
Jenny Cook Great Oak Cohousing, Ann Arbor, MI www.gocoho.org
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